Mahindra Q2 net profit falls 26%

Mahindra Q2 net profit falls 26%

By Reuters

New Delhi: Mahindra & Mahindra Ltd, top utility vehicle and tractor maker reported a 26% fall in quarterly profit on 29 October on lower sales of tractors and a firm rupee that hurt export earnings.

Mahindra, which makes the Logan sedan in a joint venture with France’s Renault, said net profit fell to Rs2.86 billion ($73 million) in the fiscal second quarter to end-September from Rs3.87 billion reported a year earlier.

That was above a forecast of Rs2.35 billion in a Reuters poll of 10 brokerages.Mahindra, which has about 40% of India’s tractor market, the world’s largest by sales, has a venture with a unit of Navistar Inc to make trucks and buses, and a manufacturing alliance with Renault and Nissan Motor Co to make 400,000 vehicles from 2009 in a plant in southern India.

Shares in Mahindra, worth $4.8 billion, rose 4% during the September quarter, trailing a 12% gain for the sector index and 18% rise for the main index